State body on lines of BIFR to be set up in Goa for sick industries

Panaji, Mar 23 (UNI) The Goa government is planning to set up a state body on the lines of the Board of Industrial and Financial Reconstruction (BIFR) to help revive and rehabilitate the sick industrial units.

Informing this during the question hour today, Industries Minister Luizinho Faleiro told the assembly that the proposal was stuck up with the Finance ministry, which had objected to it as it involved Rs 700 crore seed money for opening the body.

He, however, acceeded to the opposition leader Manohar Parrikar's suggestion that the body could be set up without any delay if the a cap was prescribed on the finances so that there would be no objections from any departments.

The Minister also said the BIFR had approved packages for revival of five sick industries in the state--Goa Auto Accessories Limited, Goa Antibiotics and Pharmaceuticals Limited, Marmagao Steel Limited, Arlem Breweries Limited (now known as Aurangabad Breweries) and the Hindustan Foods Limited.

The electricity department had given a concession to Marmagao Steel in power tariff at the rate of Rs 2.70 per unit for all consumption, without demand charges, during the month.

The Economic Development Corporation had allowed the Goa Auto Accessories for conversion of its loan of Rs 300 lakh into 8.5 per cent redeemable preference shares, besides converting its unpaid interest of Rs 192 lakh into equity, he said.

For the Goa Antibiotics and Pharmaceutical Limited, the EDC had waived penal interest and liquidated damages charged till 1997 end, amounting to about Rs 36 lakh besides offering various other concession, Mr Faleiro added.

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